China New Consumption Group (08275.HK) issued a profit warning, expecting a net loss of approximately HK$22 million to HK$30 million for the year.

Capital Dynamics Financial APP News, China New Consumption Group (08275.HK) announced that the group expects to incur a net loss ranging from approximately 22 million Hong Kong dollars to approximately 30 million Hong Kong dollars for the year ending March 31, 2026, compared to a net loss of 31 million Hong Kong dollars for the year ending March 31, 2025. The board of directors believes that the net loss is mainly due to (i) a significant decrease in construction contract income by approximately 88.6%, from 156.2 million Hong Kong dollars for the year ending March 31, 2025 to 17.9 million Hong Kong dollars for the year ending March 31, 2026; (ii) a decrease in gross profit margin from approximately 22% to a gross loss margin of approximately 104%, which is attributed to the overall downturn in the real estate market and a decrease in the value and profit margin of projects undertaken by the group during the period.